Traders and floor officials react to technical issues on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 3, 2024.
Brendan McDermid | Reuters
The Dow Jones Industrial Average climbed Monday as investors sold big technology names in favor into other sectors such as banks and energy.
The Dow advanced 254 points, or 0.7%. The S&P 500 was marginally lower, while the tech-heavy Nasdaq Composite declined 0.8%.
Information technology was the only negative sector for the day, down 0.8%. Meanwhile, energy, financials and utilities were all up more than 1%. Dow members JPMorgan Chase, Goldman Sachs and Chevron climbed more than 1% each.
Nvidia fell more than 5%, adding to its 4% decline last week that snapped an eight-week winning streak. The pullback occurred after Nvidia briefly dethroned Microsoft as the most valuable company in the U.S. Chart analysts also pointed to bearish patterns in Nvidia’s recent trading.
Despite the selloff, shares are still up about 150% for the year, making them the second best performer in the S&P 500.
The pullback in Nvidia is “pretty healthy,” according to Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
“Last week and now, we’re seeing a healthy rotation. This is actually a really nice pause in tech, and a rotation back into some of the other sectors that have been pulling back,” Tentarelli said.
The enthusiasm surrounding artificial intelligence has lifted the market significantly this year even as investors grappled with shifting expectations for rate cuts and a slowing economy. The S&P 500 has advanced almost 15% this year after notching 31 record closes.
Investors will receive key inflation data this week in the form of May’s personal consumption expenditure data. The Federal Reserve’s preferred inflation gauge is set to be released Friday.
Stocks are coming off a record-setting week, with the S&P 500 and Nasdaq notching fresh all-time highs as Wall Street heads into the final week of June and end of the first half of 2024.
